By Lucy Ogalue
Dr Nathaniel Oladunjoye, an economist, has urged the Federal Government to increase fuel supply to cushion Nigerians from rising petrol prices.
Oladunjoye, a Senior Lecturer, Department of Economics, Obafemi Awolowo University, Ile-Ife, made the call in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.
He said government’s intervention was necessary because rising petrol prices were worsening poverty and reducing welfare of Nigerians.
“Once the policy of the government is driving people into poverty, penury, and driving people into multidimensional poverty, then the government must take caution.
“Nigeria, as an oil-producing country, should ensure that its citizens remain primary beneficiaries of the nation’s natural resources.
“As such, government policies should improve citizens’ welfare rather than make vulnerable Nigerians worse off,” he said.
According to the economist, the government can intervene without necessarily returning to the previous petrol subsidy regime.
“If the government does not want to reintroduce subsidy, fine. But the government can also oversupply.
“The federal government can increase the quantity of petroleum supplied to the Dangote Refinery while requiring the product to be sold at an agreed price.
“The relief is coming in the form of more supply of the product to Dangote than pushing the continuous increase to the income of the citizens,” he said.
He said such intervention would provide relief to households already facing declining incomes and increasing transportation and living costs.
Oladunjoye also urged the government to strengthen border controls and provide relevant agencies with equipment and personnel to tackle fuel smuggling.
He said government should not transfer the cost of porous borders to Nigerians through higher petrol prices.
“Rising petrol prices have broad effects because transportation costs influence the prices of food and other goods.
“The resulting increases can worsen poverty, inequality and unemployment while placing further pressure on households.
“So, let us address the issue of poverty. Let us address the issue of inequality. Let us address the issue of unemployment,” he said.
He said government’s primary responsibility was to improve citizens’ welfare and prevent policies that would make vulnerable Nigerians worse off.
He said that Nigerians should be primary beneficiaries of the country’s oil resources, particularly given the relatively low income levels of many citizens.
“How can a worker earning N77,000 minimum wage cope when petrol costs more than N1,400 per litre.
“The government should intervene when essential commodity prices rise excessively, because even capitalist countries intervene in their economies.
“There is no more rational justification when the welfare of the people keeps declining,” Oladunjoye said.(NAN)
Edited by Kadiri Abdulrahman